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Santa bought an option contract on Telstra shares with an exercise price of $60 and an expiry date of three months. The market price for
Santa bought an option contract on Telstra shares with an exercise price of $60 and an expiry date of three months. The market price for Telstra shares today is $56.85. The call price is trading at $0.45. a) Calculate the break-even amount for the call position and draw a fully labelled diagram for both buyer of the option and seller of the option. (5 marks)
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